In 2020, volume sales of cigarettes suffered much steeper decline compared to the previous few years, and this was accompanied by the first value sales decline in a number of years. COVID-19 brought great changes to Portuguese consumers’ lifestyles, limiting people’s movement and social interactions.
Consumers continued to shift towards lower-priced brands in 2020 as further tax rises increased the average unit price of cigarettes. In the past, brands were repositioned as economy with producers reducing prices either by making brands available in soft packs, which are marginally cheaper than folding cartons, or reducing their unit prices in order to reposition them in the economy segment.
Tabaqueira SA - Empresa Industrial de Tabacos SA, the Portuguese subsidiary of Philip Morris International Inc, maintained its dominance of cigarette sales in 2020 and even gained retail volume share. Its wide product portfolio and, in particular, its strong distribution network granted the company competitive advantages, especially as on-trade channels were significantly impacted in 2020.
In 2021 and 2022, retail volume sales of cigarettes are expected to recover some of the sales lost in 2020. As on-trade establishments reopen in 2021 and operate more freely, the vending channel will also recover, supporting slightly increased sales of cigarettes in 2021 and 2022.
The Portuguese government has not changed the main elements of tobacco taxation for 2021. However, it has changed the way of calculating the minimum tax, which now takes into account all cigarettes introduced on the market in the previous year, instead of just the most sold brand.
In a highly competitive but intensely regulated and taxed category such as cigarettes, innovation levels are anticipated to remain reduced. Producers are focusing their investments on the launch and development of new combustion and vaping systems.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
Understand the latest market trends and future growth opportunities for the Cigarettes industry in Portugal with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Cigarettes industry in Portugal, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Cigarettes research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page